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You have the keys. You have the car. Now all you need is car insurance and you’ll be ready to hit the road. Here is a look at common car insurance coverage types.
Liability car insurance covers you when you cause property damage or injuries to someone else. For example, if you cause an accident and the other driver breaks their arm, your liability insurance would pay for their medical bills and for damage to their vehicle. Liability insurance also covers your legal costs if you are sued because of a car accident.
When you buy liability car insurance, you’ll have the option to choose your policy limits. You are required to purchase liability car insurance. It’s a good idea to buy more than the minimum requirement. That’s because you are still responsible for paying for any amount that exceeds your policy limits, and you could be sued for the balance. The best car insurance will include enough liability insurance to cover what you could lose in a big lawsuit.
TATA AIG Car Insurance
INR 2094 onwards*
Claim Settlement Ratio
On TATA AIG's secure website
ICICI Lombard Car Insurance
Prices Starting From
Instant claims processing
On ICICI's secure website
Acko Car Insurance
Prices Starting From
INR 2094 onwards*
Claim settlement ratio
Instant claim settlement for minor claims and free pick up and drop services (in selected cities)
On Acko's secure website
If a driver without insurance crashes into you, uninsured motorist coverage (UM) pays for your injuries and damages to your car. It also covers your passengers and family members who live with you if they’re hit by an uninsured driver.
Uninsured motorist insurance also covers you if you’re hit as a pedestrian. Underinsured motorist (UIM) coverage is similar to UM. It pays for your medical bills and other expenses if a driver who does not have enough insurance crashes into you.
Generally, UM is a good coverage to have. If you buy UM, the coverage amount will typically match your liability car insurance amounts. For example, if you have liability limits of INR 100,000 for injury to one person and INR 300,000 for injuries in one accident, you will buy UM in that amount.
Comprehensive insurance pays to repair and replace your car if it is stolen or damaged by fire, flooding, hail, vandalism, falling objects (like a tree branch) or a collision with an animal.
It is sold as optional coverage. But if you have a car loan or lease, your lender or leasing company will likely require you to carry comprehensive insurance cover.
Comprehensive insurance has an insurance deductible, which is the amount deducted from an insurance claims check. A higher deductible will lower your car insurance premium, but make sure you can afford to pay that amount out-of-pocket.
Medical Payments are often referred to as “MedPay.” It covers medical expenses for you and your passengers regardless of who is at fault for the accident. MedPay is often sold in small amounts.
Personal injury protection (PIP) is a similar coverage that pays for medical bills and other expenses for you and your passengers, no matter who is at fault for the accident. PIP also covers other expenses such as lost wages, rehabilitation costs, funeral expenses and survivor benefits, and services you cannot perform due to injuries like house cleaning or child care.
Car insurance companies offer several optional coverage types that you can buy to tailor a policy to suit your needs. Here are some common coverage types.
